Dealmaker: Walker & Dunlop Arranges Equity, Construction Financing for Philadelphia Industrial Development
(Illustration courtesy of Walker & Dunlop, Bethesda, Md.)
Walker & Dunlop, Bethesda, Md., arranged $40 million in limited partner equity and $135 million in construction financing for 5000 Richmond Street, a 750,000-square-foot last-mile industrial distribution facility in Philadelphia.
Walker & Dunlop’s Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, Mo Beler, Michael Diaz, and Michael Ianno advised DH Property Holdings LLC and a confidential life insurance company. Proceeds will fund the development and lease-up of the two-building facility.
Appel, a senior managing director and co-head of the New York Capital Markets team at Walker & Dunlop, said the multi-year effort began with his team sourcing limited partner capital to help DH Property Holdings acquire the land during the COVID pandemic and culminated in a competitive construction financing package from Barings Real Estate.
The project sits just six miles from Center City Philadelphia close to some of the city’s most densely populated counties. The location offers future tenants immediate access to I-95 (2 minutes), I-276, and I-476, allowing easy access to New York City and Washington, D.C.
Upon completion, the site will become a two-building Class A industrial campus with 40-foot clear heights, 112 loading dock doors, and 206 trailer parking stalls. The site is located in a Qualified Opportunity Zone and benefits from a long-term tax abatement provided by the City of Philadelphia.